Historical Cash-flow VolatilityPrior swings in cash flow highlight exposure to project timing, milestone payments, and working capital swings common in engineered plant delivery. Even with recent positive FCF, inconsistent conversion raises execution and liquidity risk for sustained capex, dividends, or larger contracts.
Modest Net Margin LevelAlthough margins improved, a sub-5% net margin offers limited buffer against cost inflation, pricing pressure, or project overruns. Modest ultimate profitability constrains internal funding capacity and leaves earnings sensitive to cyclical swings or adverse contract economics over the medium term.
Project-based Revenue LumpinessA business model centered on engineered plant and project delivery tends to produce lumpy revenue and backlog-driven results. This raises execution risk, uneven cash conversion, and dependence on timely project wins, which can amplify earnings volatility across reporting periods.